You $100,000 to invest in Stock X, Stock Y and Stock Z You must invest all of your money. Your goal is to create a portfolio that is as risk of the overall market. If X has an expected return of 16 percent and a beta of 1.2. Y has an expected return of 8 percent and a beta of 0.7 and Y has an expected return of 12 percent and a beta of 1.1.

You invest $40,000 in Stock X.

How much do you invest in Stock Z?

the risk-free rate is a 7 percent, how much money will you invest in stock Y? How do you interpret your answer?